Inventory Financing

In addition to Accounts Receivable Financing, Magnolia Financial also provides working capital secured by a company’s Inventory. Inventory Financing works as a line of credit to allow a business to purchase raw materials or products they sell.  Inventory Financing can be especially useful for seasonal businesses that may need to “ramp up” and buy product for the busy season but do not yet have the Accounts Receivable to support a traditional Asset-Based Line of Credit.  Many companies use Inventory Financing to fund purchases for larger orders so they can grow their business without cash flow constraints.

How does it work?

  • Used as an add-on to an existing Accounts Receivable Line of Credit.
  • Allows you to leverage your existing inventory to provide additional cash flow.
  • Advance rates are typically up to 50% of eligible inventory but can be based on the seasonal needs of your company.


Client meeting in office

Why choose Magnolia Financial?

  • We don’t have a boxed approach to inventory lending. We consult with our clients to customize a solution that makes sense…even when it may be outside our normal lending parameters
  • Your business can change on a dime. Magnolia’s process is designed to react quickly so you can get back to the business at hand.
  • You need to remain flexible, so make sure you choose a lender that is flexible as well.


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What our Clients Say

Kerry Coker, KAMADO JOE

Kerry Coker, KAMADO JOE

"A Breath of Fresh Air"

"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."

Frank Workman, Dealers Supply & Lumber Company

Frank Workman, Dealers Supply & Lumber Company

"Available when we needed them"

""Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going and gave us the help we needed to get there.""

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